How SNW Approaches High-Quality, Tax-Efficient Fixed Income

Heightened interest in the control, transparency and tax efficiency of separately managed accounts (SMAs) has driven demand for these products in recent years, particularly in the fixed income space. At SNW, we provide high-quality, tax-efficient fixed income management delivered through SMAs, with an approach that emphasizes consistency, liquidity and low volatility. What’s more, we are able to help clients align their investments with their values by offering impact solutions through a proven, proprietary methodology.

Broad Investment Capabilities

We offer four investment-grade strategies – including municipal, taxable, municipal/taxable blend and credit strategies – that can be personalized to meet investors’ tax, volatility, liquidity and impact objectives. Our focus is on generating after-tax income/total returns with a unique ability to account for an individual investor’s state of residence. Ultimately, we seek to achieve investor objectives and endeavor to outperform stated benchmarks on a rolling three-year basis, while exhibiting similar levels of volatility.

Across all strategies and portfolios, we employ an active top-down, bottom-up investment process. Because we can’t control interest rates—and our research suggests that timing interest rate movements may not offer a repeatable, productive means of generating outperformance—we manage our portfolios within tight duration bands around our stated benchmarks.

Instead, we focus on generating outperformance via active sector allocation and security selection within each strategy. Critical to the investment process is a comprehensive risk framework that allows us to manage portfolio risks accurately and mitigate the downside. We believe this approach enables us to deliver attractive total return potential while managing portfolio volatility.

Impact Investing Expertise

In 2014, we began offering impact versions of each of our existing strategies. The goal of each impact portfolio is to achieve market returns or better through investments that can deliver a positive social or environmental outcome. To achieve this, we assign each security that meets our credit requirements with an impact rating based on a proprietary impact methodology. Less than 40% of the securities on our approved list are eligible for inclusion in impact portfolios.

A Focus on Exceptional Client Support

We operate with a collaborative investment culture that supports idea sharing and contributions from all team members. Constant communication—within the investment team and with clients—is a hallmark of that culture. Our client service team is available via phone and email for account servicing needs, and we provide access to portfolio managers through regularly published thought leadership on issues of importance to investment grade bond investors. Read our brochure to learn more about our approach to managing high quality, tax-efficient fixed income portfolios.

These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.

This material is provided for general and educational purposes only, is not intended to provide legal or tax advice, and is not for use to avoid penalties that may be imposed under U.S. federal tax laws. OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Investing involves risks including possible loss of principal.

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